NOTES TO FINANCIAL STATEMENTS
DIVIDENDS TO SHAREHOLDERS: Dividends from net investment income are declared by the Portfolio each
day on "settled" shares (i.e. shares for which the Portfolio has received payment in federal funds) and are paid
monthly. Net realized capital gains, if any, will be distributed at least annually. The character of distributions made
during the year from net investment income or net realized gains may differ from their ultimate characterization for
federal income tax purposes due to differences between generally accepted accounting principles and tax
accounting principles related to the character of income and expense recognition.
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to an Investment Advisory Agreement, BlackRock Advisors, Inc., a wholly-owned subsidiary of
BlackRock, Inc., serves as investment adviser to the Portfolio. For its advisory services, BlackRock Advisors
Inc., is entitled to receive fees, computed daily and paid monthly, at the annual rate of 0.20% of the Portfolio's
average daily net assets.
BlackRock Advisors, Inc.,may, at its discretion, waive all or any portion of its advisory fee for the Portfolio and
may reimburse the Portfolio for certain operating expenses. For the period ended March 31, 1999, advisory fees
and waiver for the Portfolio were as follows:
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank Corp., BlackRock Advisors, Inc., and
BlackRock Distributors, Inc. ("BDI") act as co-administrators for the Fund. The combined administration fee is
computed daily and payable monthly, based on a percentage of the average daily net assets of the Portfolio, at
the following annual rates: 0.23% of the first $500 million, 0.21% of the next $500 million, 0.19% of the average
daily net assets in excess of $1 billion.
PFPC, BlackRock Advisors, Inc. and BDI may, at their discretion, waive all or any portion of their
administration fees for the Portfolio. For the period ended Marc